"Under the "triple lock" policy, the state pension goes up each year by either 2.5%, inflation, or average earnings growth - whichever is the highest figure. The Office for National Statistics (ONS) revealed total pay including bonuses for the three months to July was 4.7%, which is likely to be the figure used for the annual increase. Almost 13 million people currently receive the state pension."
"Sir Steve Webb, partner at pension consultants LCP and former pensions minister, said the standard rate of the new state pension was "creeping ever closer to the frozen personal tax allowance", which currently stands at 12,570. The standard personal allowance is the amount of income permitted each year without paying tax. Sir Steve said that someone with no other income aside from the new state pension is set to be a taxpayer come April 2027."
Under the triple lock, the state pension increases each year by 2.5%, inflation, or average earnings growth, whichever is highest. ONS data showed total pay including bonuses rose 4.7% for the three months to July, likely informing the pension uplift. The new flat-rate state pension is expected to reach £241.05 a week (£12,534.60 annually), an increase of £561.60. The old basic pension is expected to rise to £184.75 a week (£9,607 annually), up £431.60. Nearly 13 million people receive the state pension. Rising pensions combined with frozen tax thresholds will push more pensioners into paying income tax.
Read at www.bbc.com
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